Test your knowledge of credit scores by LAtimes.com
Many people, including lenders, don’t understand how their actions affect their scores, which determine whether they can get a loan and what interest rate they’ll be charged.
Here’s a quiz to test your knowledge of credit scores, that all-important number on which mortgage lenders and most other creditors base their decisions not only to grant you a loan but also how much to charge.
A high score means you can obtain a home loan at the best possible rate. A low score and you’ll pay dearly, if you can get a loan at all. The difference between a 720 score and 580 could be as much as 3 percentage points, according to the Consumer Federation of America.
- Paying off an account that has been turned over to the creditor’s collection department or a collection agency will increase your credit score.
- Closing a credit card account will increase your score.
- Having cash on hand in a savings account will improve your score.
- Borrowing money from a finance company is no different from borrowing from a bank.
- Seeking the help of a qualified consumer credit counselor will automatically improve your score.
- You need to worry about your credit score only when you are buying a big-ticket item, such as a house or automobile.
- Your credit score differs, depending on the item you are purchasing.
- A finance company credit card scores the same as any other credit card.
- Negative credit information can stay on your record forever.
- There’s nothing wrong with using your maiden name when pulling your credit report and your married name when applying for credit.
- If you have poor credit and cannot obtain credit on your own, the best ways to start rebuilding your credit record are by obtaining a secured credit card or asking someone to cosign with you for a major credit card.
see the answers here: LAtimes.com
